Business Start-Up Accountants

Starting a new business can be exciting and challenging at the same time. You need to research the market, analyze your competitors, raise finance, establish networks, find a location, set up an office, and recruit staff – the list is endless.

There are three common ways to start a business. These are:

• Buy an existing business
• Buy a franchise
• Start a new business from scratch

The start-up accountants at Lotus Smart can explain each of the above options and provide start-up business accounting advice to help you determine which option is best for you.

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Business Start-Up Process

Irrespective of whatever option you choose, you need to follow a series of steps before your new business can stand on its own feet.

Our start-up accountants have devised a 10-step process that is generally applicable to any start-up business:

• Conduct market research: The first step is to complete extensive market research. This will include finding out what your competitors are doing, what is the point of differentiation of your product/services, and what is the potential of your product/services in the market.
• Determine your business structure: Choosing a business structure is a particularly critical step when starting a business. Lotus Smart has business structure specialists who can provide valuable accounting advice for start-ups, helping you to choose the most suitable option depending on your circumstances.
• Finalize strategic business plan: This should cover your business goals, mission, vision, processes, pricing, and products.
• Find out about licensing requirements: This will require dealing with the local council and other Government bodies. It may require consultation with lawyers, engineers, and other consultants. At Lotus Smart, we have a team of expert start-up accountants who can advise you on the areas of consultation required.
• Open bank account/Merchant facility etc.: While deciding which bank to choose, look for close proximity to banking, reasonable rates for merchant facilities, and products/facilities offered for small businesses.
• Determine your financial requirements and options available to arrange finance: We are often asked by our clients how much capital is needed in order to start a new business. Unfortunately, there is no shortcut answer to this question. You need to carefully analyze the set-up cost and ensure you have contingencies in case things do not go as per plan. As a rule of thumb, we recommend having adequate capital to manage the overheads and other expenses for at least 6 months. However, the start-up business accounting advice we provide you with will depend upon the type of business you are in.
• Find the right location: Having the right location is critical for the success of your business. It could be your home office or leased space in a commercial building.
• Create a marketing plan: This should include a website, social media, branding, and digital media.
• Choose your accounting software: For small businesses with an annual turnover of less than $5 million, we recommend a cloud-based solution offered by Xero or MYOB. Implementing good accounting software provides a base for sound financial control and efficient decision-making.
• Obtain appropriate insurance coverage for your business: Examples include professional indemnity, business, content, public liability, loss of profit, work cover, etc. depending upon the nature of your business.